MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 7 — 15 Questions

Question 1

A manufacturer uses Dynamics 365 Supply Chain Management. The production scheduler needs to see real-time capacity load on work centers to avoid overloading. Which workspace or tool should they use?

Accepted Answer

Gantt chart in production control. Option D is correct because the Gantt chart in production control provides real-time capacity visualization. Option A is wrong because the master planning workspace focuses on material planning, not capacity. Option B is wrong because the cost management workspace is for costing. Option C is wrong because the warehouse management workspace is for warehouse operations.

Answer

Cost management workspace

Answer

Warehouse management workspace

Answer

Master planning workspace

Question 2

A company uses Dynamics 365 Supply Chain Management. They want to automate the creation of purchase orders when inventory for a specific item drops below a predefined level. Which parameter should be set on the item?

Accepted Answer

Reorder point. Option C is correct because the reorder point triggers replenishment when stock falls below that level. Option A is wrong because the safety stock is a buffer, not a trigger for ordering. Option B is wrong because the maximum stock quantity defines the upper limit. Option D is wrong because the cycle counting frequency is for inventory accuracy, not replenishment.

Answer

Maximum stock quantity

Answer

Cycle counting frequency

Answer

Safety stock quantity

Question 3

A company uses Dynamics 365 Supply Chain Management with lot-controlled items. The quality team needs to block a specific lot from being used in production or sales until testing is complete. Which action should they take?

Accepted Answer

Apply an inventory blocking to the lot. Option B is correct because inventory blocking allows you to block a lot for all transactions. Option A is wrong because quality orders are for testing, but they do not automatically block stock unless configured. Option C is wrong because quarantine zones are physical, not system-based. Option D is wrong because non-conformance is for after a defect is found.

Answer

Create a non-conformance for the lot

Answer

Move the lot to a quarantine zone

Answer

Create a quality order for the lot

Question 4

A company uses Dynamics 365 Supply Chain Management. The warehouse manager wants to use barcode scanning for receiving and shipping. Which feature should be configured?

Accepted Answer

Warehouse mobile app. Option D is correct because the warehouse mobile app supports barcode scanning for all warehouse operations. Option A is wrong because the master planning module is for planning. Option B is wrong because the product information management module is for product data. Option C is wrong because the sales and marketing module is for sales processes.

Answer

Product information management

Answer

Sales and marketing

Answer

Master planning

Question 5

A company uses Dynamics 365 Supply Chain Management. They need to track the cost of raw materials and finished goods accurately for financial reporting. Which module should they use?

Accepted Answer

Cost management. Option A is correct because cost management tracks costs throughout the supply chain. Option B is wrong because inventory management focuses on stock levels. Option C is wrong because warehouse management focuses on physical movements. Option D is wrong because production control focuses on manufacturing execution.

Answer

Production control

Answer

Inventory management

Answer

Warehouse management

Question 6

Which TWO features are part of Dynamics 365 Supply Chain Management's warehouse management capabilities?

Accepted Answer

Wave processing. Options A and C are correct because wave processing and location directives are key warehouse management features. Option B is wrong because route planning is in transportation management. Option D is wrong because demand forecasting is in master planning. Option E is wrong because vendor collaboration is for procurement.

Answer

Route planning

Answer

Demand forecasting

Answer

Vendor collaboration

Question 7

Which THREE components are essential for setting up a production process in Dynamics 365 Supply Chain Management?

Accepted Answer

Bill of materials (BOM). A is correct because the Bill of Materials (BOM) defines the list of components and raw materials required to produce a finished product. In Dynamics 365 Supply Chain Management, the BOM is a foundational data entity that specifies quantities, items, and their relationships, enabling the system to calculate material requirements and costs for production orders.

Answer

Purchase order

Answer

Sales order

Question 8

Which TWO planning methods are available in Dynamics 365 Supply Chain Management's master planning?

Accepted Answer

Material requirements planning (MRP). Options A and C are correct because master planning supports both material requirements planning (MRP) and distribution requirements planning (DRP). Option B is wrong because enterprise resource planning (ERP) is the system category, not a planning method. Option D is wrong because capacity requirements planning (CRP) is related but not the same as MRP/DRP. Option E is wrong because production planning is a broader term.

Answer

Capacity requirements planning (CRP)

Answer

Enterprise resource planning (ERP)

Answer

Production planning

Question 9

You are configuring master planning for item A0001 in Dynamics 365 Supply Chain Management. The exhibit shows a coverage group configuration. Based on the exhibit, what is the expected behavior when the on-hand quantity drops to 400 units?

Accepted Answer

A planned order is generated to replenish up to 2000 units.. Option B is correct because with MinMax reordering policy, when on-hand drops below the minimum quantity (500), a planned order is generated to bring inventory up to the maximum (2000). Option A is wrong because safety stock is 100, but the trigger is the minimum quantity. Option C is wrong because the period is 30 days but does not affect this trigger. Option D is wrong because the coverage group FIFO affects issue priority, not the reorder trigger.

Answer

No action is taken because safety stock is 100 and on-hand is above that.

Answer

The system waits for the next period (30 days) before generating a planned order.

Answer

A planned order is generated to replenish only 100 units to meet safety stock.

Question 10

You are reviewing a work template configuration in Dynamics 365 Supply Chain Management. Based on the exhibit, what will this work template do?

Accepted Answer

Create picking work for sales orders.. Option C is correct because the work template has a work order type of 'Sales orders' and a work line type of 'Pick', which creates picking work for sales orders. Option A is wrong because the work order type is sales orders, not purchase orders. Option B is wrong because the line class is 'Sales', not 'Receiving'. Option D is wrong because the work priority is 10, which means lower priority (higher number), but the question asks what it does, not priority.

Answer

Create receiving work for purchase order lines.

Answer

Create put-away work for purchase order receipts.

Answer

Assign high priority to sales order picking work.

Question 11

You are configuring a reservation hierarchy for a warehouse in Dynamics 365 Supply Chain Management. Based on the exhibit, what is the primary criterion for picking inventory?

Accepted Answer

Location. Option A is correct because the reservation hierarchy lists location with priority 1, meaning it is the primary dimension for picking. Option B is wrong because lot number is priority 2. Option C is wrong because expiration date is priority 3. Option D is wrong because FIFO is the name of the hierarchy, not the primary dimension.

Answer

Expiration date

Answer

Lot number

Answer

FIFO

Question 12

A manufacturing company uses Dynamics 365 Supply Chain Management. They notice that the production schedule is not reflecting real-time capacity constraints, causing delays. Which feature should they configure to dynamically adjust schedules based on current resource availability?

Accepted Answer

Finite scheduling. Option B is correct because finite scheduling considers capacity constraints and dynamically adjusts schedules. Option A is wrong because Gantt charts are visualization tools, not scheduling logic. Option C is wrong because MRP focuses on material planning, not capacity. Option D is wrong because shop floor execution tracks actual production, not schedule adjustments.

Answer

Shop floor execution

Answer

Gantt chart views

Answer

Material requirements planning (MRP)

Question 13

A company uses Dynamics 365 Supply Chain Management to manage inventory across multiple warehouses. They want to ensure that high-value items are stored in the most secure locations. What feature should they use to define storage restrictions based on item value?

Accepted Answer

Location directives. Option C is correct because location directives define rules for item placement, including criteria like item value. Option A is wrong because inventory status is for availability, not placement. Option B is wrong because warehouse zones group locations but do not enforce placement rules. Option D is wrong because product filters are used for picking, not storage.

Answer

Inventory status codes

Answer

Product filters

Answer

Warehouse zones

Question 14

A distribution company is implementing Dynamics 365 Supply Chain Management and wants to optimize transportation costs. They have contracts with multiple carriers offering different rates based on weight, distance, and delivery speed. Which module should they use to automatically select the most cost-effective carrier for each shipment?

Accepted Answer

Transportation management. Option D is correct because Transportation management (TMS) includes rate engines and routing guides to select carriers based on defined criteria. Option A is wrong because Warehouse management handles inventory, not transportation. Option B is wrong because Procurement and sourcing is for purchasing, not shipping. Option C is wrong because Inventory management tracks stock levels but not carrier selection.

Answer

Inventory management

Answer

Warehouse management

Answer

Procurement and sourcing

Question 15

A manufacturer uses Dynamics 365 Supply Chain Management and wants to implement a quality control process where incoming raw materials are inspected before being accepted into inventory. Which feature should they use to enforce that inspection?

Accepted Answer

Quality orders. Option B is correct because quality orders can be generated automatically upon receipt and enforce inspection before inventory registration. Option A is wrong because inventory journals record transactions but do not enforce quality checks. Option C is wrong because quarantine zones are for holding nonconforming items, not initial inspection. Option D is wrong because nonconformance management handles defective items after inspection.

Answer

Quarantine zones

Answer

Inventory journals

Answer

Nonconformance management